Working Paper

Money in search equilibrium, in competitive equilibrium, and in competitive search equilibrium


Abstract: We compare three market structures for monetary economies: bargaining (search equilibrium); price taking (competitive equilibrium); and price posting (competitive search equilibrium). We also extend work on the microfoundations of money by allowing a general matching technology and entry. We study how equilibrium and the effects of policy depend on market structure.

https://doi.org/10.26509/frbc-wp-200405

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 2004

Number: 0405